If your medical insurance premium has gone up recently, you’re not alone — and you’re probably wondering why, and what you should do about it.
Here’s the full picture.
👉 Why premiums are rising
Malaysia’s medical cost inflation hit 15% in 2024, higher than both the global and Asia Pacific average of 10%. The main driver isn’t that hospitals are charging more per treatment — the World Bank found that higher utilisation of healthcare services accounts for around 70% of cost growth, while higher average costs per claim make up about 25%. In other words, more people are going to private hospitals more often, and each visit costs more.
When claims rise faster than premiums collected, insurers have to reprice. That’s exactly what happened.
👉 What BNM put in place to protect you
To ease the impact, Bank Negara Malaysia stepped in with interim measures. Insurers are required to spread premium increases over a minimum of three years, with the measures in place until end of 2026. At least 80% of policyholders are expected to see yearly premium adjustments of less than 10%.
For those aged 60 and above on the minimum MHIT plan, there’s a one-year pause on premium adjustments due to medical claims inflation.
Also worth knowing: all insurers must offer alternative MHIT products at the same or lower premiums for policyholders who don’t want to continue their existing repriced plan — and switching won’t require additional underwriting or incur any switching cost.
👉 What’s coming next: the Base MHIT Plan
The bigger shift is on the horizon. The government, together with BNM, has released a White Paper for a new Base MHIT Plan. A pilot phase is expected in the second half of 2026, with full market availability targeted for early 2027.
There are two options under this plan:
- The Standard Plan, with an annual limit of RM100,000, priced at RM80–RM120/month for those aged 31–35.
- The Standard Plus Plan, which offers an annual limit of RM300,000 at lower premiums (RM50–RM70/month for the same age group) — but comes with a deductible of RM10,000–RM15,000, meaning you pay that portion first before coverage kicks in.
Crucially, policyholders facing repricing will be able to switch seamlessly to this base plan with their current insurer — without new medical underwriting.
👉 So what should you do now?
If you already have a medical plan, don’t panic and don’t cancel. Between January 2024 and June 2025, 340,000 people surrendered or stopped their medical insurance after premiums increased. That’s a lot of people now unprotected — and getting back in later means new underwriting, which could mean exclusions or higher premiums.
A few things worth checking:
- Has your premium been repriced? Review the letter from your insurer.
- Are you on the right plan for your current life stage and budget?
- Could you benefit from adjusting your coverage rather than cancelling?
These are conversations worth having with your wealth planner — not decisions to make alone based on a notification letter.
Disclaimer: The content shared here is for general information and educational purposes only. It does not constitute financial, legal, or tax advice, and should not be relied upon as such. Everyone’s financial situation is different — if you have specific questions or needs, feel free to reach out for a personalised consultation.